China’s Tencent Music raises nearly $1.1 billion in U.S. IPO – Reuters
What happened: Tencent Music said it raised around $1.1 billion in its IPO, pricing at $13, the low-end of its targeted range. The IPO values Tencent’s music streaming affiliate at $21.3 billion. The company’s US IPO is the fourth largest among Chinese firms listed in 2018 by deal value. Having more than 800 million monthly active users, Tencent Music is China’s biggest music streaming firm. The company’s shares will start trading today (Dec. 12).
Why it’s important: Tencent Music’s stock performance is worth watching as it could show investor confidence amid China-US tensions. It may also allow domestic firms to evaluate any listing plans, particularly while China is accelerating the launch of a Shanghai-based tech board. It will also be a crucial point for parent company Tencent to optimize and adjust internal business structures for enhancing its profitability amid its shift from consumer-based platforms to those targeting enterprises.